Question
Lisa,the owner-manager of a small business, had carefully monitored her cash position over the past financial year, and was pleased to note at the end
Lisa,the owner-manager of a small business, had carefully monitored her cash position over the past financial year, and was pleased to note at the end of the year that the cash position was strong, and had shown a healthy 40% increase over the year. When presented with the income statement for the year, she was dismayed to note that the profit earned in the last year had deteriorated significantly and had become a loss for the current period. In her anger, she accuses you of having made errors in the accounting since such a silly situation could not possibly exist. How would you respond to her ? minimum 550 words
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